Santander’s purchase of Webster Bank will create a combined entity with $327bn in assets, targeting 18% return on tangible equity by 2028.
The Federal Reserve has approved Banco Santander’s $12.2bn acquisition of Webster Bank, a deal first announced in February. The combined entity will hold $327bn in assets, $185bn in loans, and $172bn in deposits based on end-2025 projections.
Regulatory approvals from the Office of the Comptroller of the Currency and the European Central Bank preceded the Fed’s decision. Completion is set for 20 August 2026, with Santander expecting the deal to bolster its U.S. operations.
Santander projects the acquisition will add 7–8% to earnings per share and deliver a 15% return on invested capital by 2028. The bank aims for an 18% return on tangible equity in its U.S. unit post-integration.